THE EFFECT OF RECRUITMENT AND SELECTION PRACTICE ON ORGANIZATIONAL PERFORMANCE; THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Recruitment and selection, as a human resource management function, is one of the activities that impact most critically on the performance of an organization in terms of achieving its ultimate goal (Costello, 2006). The purpose of this study is to identify the effect of employee recruitment and selection on organizational performance in CBE. The study focused particularly on identifying the effect of internal recruitment, external recruitment and selection practice on CBE performance. The study also reviewed literature on recruitment and selection with theoretical, empirical and conceptual frameworks. To achieve the objective, the researcher was employed both descriptive and explanatory design method. study was also applied both qualitative and quantitative research approach (mixed method approach). Purposive sampling technique was used to select branches and process unit’s representative of commercial bank of Ethiopia for the study. Survey questioners was used to collect the data from a sample of 377 employees who are working in under four Addis Ababa districts and head office in commercial Bank of Ethiopia. Descriptive and inferential statistics were employed for the data analysis process. The descriptive statistics include the mean, frequencies, percentage and standard deviation. The inferential statistics (correlation analysis and regression analysis) was also used in analyzing the relation between independent and dependent variables. The finding indicates that internal recruitment, external recruitment and selection correlated and have significance effect on organizational performance. the internal source of recruitment methods of the bank is not rational, acceptable and fair. Additionally, CBE recruitment and selection practice did not reduce potential legal complications and did not save training time and money including, did not help CBE to gain competitive advantage. And most of employees are not motivated to stay with the organization. So that the researcher come up with recommendation that the bank should look and improve other process of HR linked with recruitment and selection like the talent management (job analysis and job specification) and compensation and reward management in order to gain competitive advantage. The management should also improve the promotional and transfer practice and criteria beside except for punishments, transfers have to be considered after a discussion with the employee of his or her console. And All legislation and policies pertaining to recruitment and selection should also be made available to all staff members of the bank